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Bonds 205: TIGRs, CATS, and LIONs

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1.
Compared to its face value, the issuing price of a CATS or TIGR was _______.
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Much lower. Like that of all zero coupon securities, the issuing price was deeply discounted.
2.
All of the following were benefits of TIGRs, CATS, and LIONs except _______.
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Ownership of a Treasury security. Ownership of a Treasury security was not a feature of the felines, which were securities issued by private firms.
3.
The units that Treasury-backed zeros are based on represent _______.
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Interest. Interest payments were divided into units as the basis of Treasury-backed zeros.
4.
TIGRs, CATS, and LIONs are acronyms _______.
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Created by brokerage firms. TIGRs, CATS, and LIONs are acronyms created by brokerage firms for securities based on Treasury bonds.
5.
Coupon-stripping consists of separating a bond's interest from its _______.
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Principal. Coupon stripping consists of separating a bond's interest from its principal and issuing securities based on each of them separately.